We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
3 Mutual Fund Misfires to Avoid - September 27, 2019 (Revised)
Read MoreHide Full Article
You may need to start looking for a new financial advisor if your current one has put any of these high-fee, low-return "Mutual Fund Misfires of the Market" into your portfolio.
High fees plus poor performance: It's a pretty simple formula for a bad mutual fund. Some are worse than others - and some are so bad that they have earned a "Strong Sell" on the Zacks Rank, the lowest ranking of the nearly 19,000 mutual funds we rank daily.
First, let's break down some of the funds currently part of our "Mutual Fund Misfires of the Market." If you happen to have put your money into any of these misfires, we'll help assess some of our best Zacks Ranked mutual funds.
3 Mutual Fund Misfires
Now, let's take a look at three market misfires.
Guidemark World ex-US Fund Service Class (GMWEX - Free Report) : 1.39% expense ratio, 0.5% management fee. GMWEX is a part of the Non US - Equity fund category, many of which will focus across all cap levels, and will typically allocate their investments between emerging and developed markets. With a five year after-costs return of 1.36%, you're for the most part paying more in charges than returns.
Sierra Core Retirement R (SIRRX - Free Report) . Expense ratio: 1.48%. Management fee: 0.5%. Over the last 5 years, this fund has generated annual returns of 2.1%. SIRRX is a part of the Allocation Balanced fund category; these funds like to invest in a variety of asset types, finding a balance between stocks, bonds, cash, and sometimes even precious metals and commodities; they are mostly categorized by their respective asset allocation.
Hancock Horizon Dividend International Fund I : Expense ratio: 1.27%. Management fee: 0.8%. HHDTX is a Global - Equity mutual fund, which invests their assets in large markets, leveraging the global economy. With annual returns of just 1.07%, it's no surprise this fund has received Zacks' "Strong Sell" ranking.
3 Top Ranked Mutual Funds
Now that we've covered our "worst offender" list, let's take a look at some of Zacks' highest ranked mutual funds with some of the lowest fees you may want to consider.
AQR Large Cap Defensive Style I (AUEIX - Free Report) : Expense ratio: 0.4%. Management fee: 0.25%. AUEIX is classified as a Large Cap Blend fund. More often than not, Large Cap Blend mutual funds invest in companies with a market cap of over $10 billion. Buying stakes in bigger companies offer these funds more stability, and are well-suited for investors with a "buy and hold" mindset. This fund has achieved five-year annual returns of an astounding 13.45%.
MSIFT Mid Cap Growth Portfolio IS (MMCGX - Free Report) is a stand out fund. MMCGX is a Mid Cap Growth mutual fund. These funds aim to target companies with a market capitalization between $2 billion and $10 billion that are also expected to exhibit more extensive growth opportunities for investors than their peers. With five-year annualized performance of 13.05%, this diversified fund is an attractive buy with a strong history of performance.
T. Rowe Price Health Sciences (PRHSX - Free Report) : Expense ratio: 0.77%. Management fee: 0.64%. PRHSX is part of the Sector - Health category, offering investors a focus on the healthcare industry, one of the largest sectors in the American economy. PRHSX has produced a 12.95% over the last five years.
Bottom Line
We hope that your investment advisor (if you use one) has you invested in one or all of the top-ranked mutual funds we've reviewed. But if that is not the case, and your advisor has you invested in any of the funds on our "worst offender" list, it might be time to have a conversation or reconsider this vitally important relationship.
If you have concerns or any doubts about your investment advisor, read our just-released report:
(NOTE: We are re-issuing this article to correct an inaccuracy. The original article, published Tuesday, September 26, 2019, should no longer be relied upon.)
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
3 Mutual Fund Misfires to Avoid - September 27, 2019 (Revised)
You may need to start looking for a new financial advisor if your current one has put any of these high-fee, low-return "Mutual Fund Misfires of the Market" into your portfolio.
High fees plus poor performance: It's a pretty simple formula for a bad mutual fund. Some are worse than others - and some are so bad that they have earned a "Strong Sell" on the Zacks Rank, the lowest ranking of the nearly 19,000 mutual funds we rank daily.
First, let's break down some of the funds currently part of our "Mutual Fund Misfires of the Market." If you happen to have put your money into any of these misfires, we'll help assess some of our best Zacks Ranked mutual funds.
3 Mutual Fund Misfires
Now, let's take a look at three market misfires.
Guidemark World ex-US Fund Service Class (GMWEX - Free Report) : 1.39% expense ratio, 0.5% management fee. GMWEX is a part of the Non US - Equity fund category, many of which will focus across all cap levels, and will typically allocate their investments between emerging and developed markets. With a five year after-costs return of 1.36%, you're for the most part paying more in charges than returns.
Sierra Core Retirement R (SIRRX - Free Report) . Expense ratio: 1.48%. Management fee: 0.5%. Over the last 5 years, this fund has generated annual returns of 2.1%. SIRRX is a part of the Allocation Balanced fund category; these funds like to invest in a variety of asset types, finding a balance between stocks, bonds, cash, and sometimes even precious metals and commodities; they are mostly categorized by their respective asset allocation.
Hancock Horizon Dividend International Fund I : Expense ratio: 1.27%. Management fee: 0.8%. HHDTX is a Global - Equity mutual fund, which invests their assets in large markets, leveraging the global economy. With annual returns of just 1.07%, it's no surprise this fund has received Zacks' "Strong Sell" ranking.
3 Top Ranked Mutual Funds
Now that we've covered our "worst offender" list, let's take a look at some of Zacks' highest ranked mutual funds with some of the lowest fees you may want to consider.
AQR Large Cap Defensive Style I (AUEIX - Free Report) : Expense ratio: 0.4%. Management fee: 0.25%. AUEIX is classified as a Large Cap Blend fund. More often than not, Large Cap Blend mutual funds invest in companies with a market cap of over $10 billion. Buying stakes in bigger companies offer these funds more stability, and are well-suited for investors with a "buy and hold" mindset. This fund has achieved five-year annual returns of an astounding 13.45%.
MSIFT Mid Cap Growth Portfolio IS (MMCGX - Free Report) is a stand out fund. MMCGX is a Mid Cap Growth mutual fund. These funds aim to target companies with a market capitalization between $2 billion and $10 billion that are also expected to exhibit more extensive growth opportunities for investors than their peers. With five-year annualized performance of 13.05%, this diversified fund is an attractive buy with a strong history of performance.
T. Rowe Price Health Sciences (PRHSX - Free Report) : Expense ratio: 0.77%. Management fee: 0.64%. PRHSX is part of the Sector - Health category, offering investors a focus on the healthcare industry, one of the largest sectors in the American economy. PRHSX has produced a 12.95% over the last five years.
Bottom Line
We hope that your investment advisor (if you use one) has you invested in one or all of the top-ranked mutual funds we've reviewed. But if that is not the case, and your advisor has you invested in any of the funds on our "worst offender" list, it might be time to have a conversation or reconsider this vitally important relationship.
If you have concerns or any doubts about your investment advisor, read our just-released report:
4 Warning Signs That Your Advisor Might be Sabotaging Your Financial Future
(NOTE: We are re-issuing this article to correct an inaccuracy. The original article, published Tuesday, September 26, 2019, should no longer be relied upon.)